Strategy reported an $8.22 billion net loss for the second quarter of 2026, a reversal from a $10.02 billion profit a year earlier. The swing was driven almost entirely by an $8.32 billion unrealized fair-value loss on its Bitcoin holdings, as the cryptocurrency fell nearly 50% from its October 2025 peak of $126,080 to around $64,745 by quarter end.
Despite the headline loss, the company's balance sheet moved in the opposite direction. Bitcoin holdings rose 11% quarter-over-quarter to 843,775 BTC as of July 26, a 25% increase year-to-date after purchasing 174,895 BTC and selling 3,620 BTC. Bitcoin per share climbed 5% to 210,824 satoshis. Long-term convertible debt was cut 18% to $6.7 billion, while the USD reserve swelled to $3.75 billion, covering more than 2.1 years of preferred dividend and interest obligations within management's 2–3 year target range.
The quarter marked a structural shift in capital allocation. Strategy raised $8.4 billion in Q2 alone, with $5.5 billion coming from digital credit issuance, yet paused Bitcoin purchases for five consecutive weeks — the longest drought since 2024. Instead, the company directed proceeds toward cash reserves and a $1 billion STRC buyback plan after the preferred shares traded as low as $74.57, well below their $99–$100 par target.